PhotoMedex Reports Third Quarter 2012 Financial Results

SAFE HARBOR STATEMENT

Some portions of the conference call, particularly those describing PhotoMedex' strategies, operating expense reductions and business plans will contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks, uncertainties and other factors. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including any statements of the plans, strategies and objectives of management for future operations; any statements regarding product development, product extensions, product integration or product marketing; any statements regarding continued compliance with government regulations, changing legislation or regulatory environments; any statements of expectation or belief and any statements of assumptions underlying any of the foregoing. In addition, there are risks and uncertainties related to successfully integrating the products and employees of the Company and Radiancy, as well as the ability to ensure continued regulatory compliance, performance and/or market growth. These risks, uncertainties and other factors, and the general risks associated with the businesses of the Company described in the reports and other documents filed with the SEC, could cause actual results to differ materially from those referred to, implied or expressed in the forward-looking statements. The Company cautions readers not to rely on these forward-looking statements. All forward-looking statements are based on information currently available to the Company and are qualified in their entirety by this cautionary statement. The Company anticipates that subsequent events and developments will cause its views to change. The information contained in this conference call speaks as of the date hereof and the Company has or undertakes no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.

-- Financial Statements follow --

PHOTOMEDEX, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
				Three Months Ended Sept. 30,												Nine Months Ended Sept. 30,
(ooo's) except per share amounts				2012						2011*						2012						2011*
Revenues				$	56,681					$	34,745					$	165,860					$	103,333
Cost of revenues					11,281						8,142						34,870						20,054
Gross profit					45,400						26,603						130,990						83,279
Operating expenses:
Selling and marketing					28,285						15,468						85,188						45,505
General and administrative					6,231						4,540						22,593						36,279
Research and development and engineering					628						281						2,146						700
					35,144						20,289						109,927						82,484
Operating income					10,256						6,314						21,063						795
Interest and other financing income (expense), net					(231	)					(91	)					(862	)					101
Income before taxes expense					10,025						6,223						20,201						896
Income tax expense (benefit)					2,500						1,974						3,606						(1,393	)
Net income 1				$	7,525					$	4,249					$	16,595					$	2,289
Net income per share:
Basic				$	0.35					$	0.34					$	0.83					$	0.21
Diluted				$	0.35					$	0.32					$	0.81					$	0.20
Shares used in computing net income per share:
Basic					21,206						12,342						20,001						10,952
Diluted					21,753						13,183						20,549						11,671
1 Includes: depreciation and amortization					1,402						90						4,176						274
Share-based compensation expense					1,531						1,600						4,819						16,436

*As a result of purchase accounting rules, the operating results of the pre-merged PhotoMedex for the three-month and nine-month period ended September 30, 2011 are not included in the above consolidated statements of operations for the periods ended September 30, 2011.

		PHOTOMEDEX, INC.CONSOLIDATED STATEMENTS OF REVENUES(UNAUDITED)
									For the three months ended:
									September 30, 2012					June 30, 2012					September 30, 2011
		Consumer:
		Direct							$	30,001				$	33,696				$	18,614
		Distributors								9,388					7,007					8,492
		Retailer and home shopping channels								10,249					9,761					6,526
		sub-total								49,638					50,464					33,632
		Physician Recurring
		XTRAC treatments								2,173					1,977					-
		Skin care								1,907					2,135					-
		Other								1,041					1,162					-
		sub-total								5,121					5,274					-
		Professional								1,922					3,168					1,113
		Total Revenues							$	56,681				$	58,906				$	34,745

PHOTOMEDEX, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
				September 30, 2012					December 31, 2011
	Assets
	Cash, cash equivalents, and short-term investments			$	54,807				$	16,549
	Accounts receivable, net				20,516					12,393
	Inventories				23,962					19,208
	Other current assets				22,228					13,690
	Property and equipment, net				5,993					5,324
	Other non-current assets				75,150					78,399
	Total Assets			$	202,656				$	145,563
	Liabilities and Stockholders' Equity
	Accounts payable and accrued liabilities			$	29,004				$	26,900
	Other current liabilities				4,381					1,948
	Bank and lease notes payable				17					2,232
	Other liabilities				3,794					2,405
	Stockholders' equity				165,460					112,078
	Total Liabilities and Stockholders' Equity			$	202,656				$	145,563

	PHOTOMEDEX, INC. CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
					For the three months ended September 30,													For the nine months ended September 30,
					2012							2011						2012						2011
	CASH FLOWS FROM OPERATING ACTIVITIES:
	Net income				$	7,525						$	4,249					$	16,595					$	2,289
	Adjustments to reconcile net income to net cash provided by operating activities--
	Depreciation and amortization					1,402							90						4,176						274
	Provision for doubtful accounts					1,313							570						3,404						2,378
	Deferred income taxes					904							943						(332	)					(5,162	)
	Stock-based compensation					1,531							1,600						4,817						16,436
	Changes in assets and liabilities:
	(Increase) decrease in--
	Current Assets					80							2,730						(23,647	)					(7,964	)
	Current liabilities					(4,058	)						(13,749	)					6,018						2,789
	Net cash provided by (used in) operating activities					8,697							(3,567	)					11,031						11,040
	CASH FLOWS FROM INVESTING ACTIVITIES:
	Proceeds (investment) in short-term deposits					(18,000	)						6,000						(18,000	)					14,500
	Lasers placed in service					(1,180	)						-						(2,129	)					-
	Purchases of PP&E, net					(60	)						(136	)					(277	)					(229	)
	Other					29							(38	)					(34	)					(110	)
	Net cash (used in) provided by investing activities					(19,211	)						5,826						(20,440	)					14,161
	CASH FLOWS FROM FINANCING ACTIVITIES:
	Proceeds from exercise of options/issuance of securities					148							9						37,800						9
	Repayments of debt					(108	)						-						(2,457	)					-
	Open market purchase of common stock					(5,342	)						-						(5,342	)					-
	Net cash (used in) provided by financing activities					(5,302	)						9						30,001						9
	EFFECT OF EXCHANGE RATE CHANGES ON CASH					(263	)						-						(337	)					-
	NET INCREASE IN CASH AND CASH EQUIVALENTS					(16,079	)						2,268						20,258						25,210
	CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD					52,886							30,523						16,549						7,581
	CASH AND CASH EQUIVALENTS, END OF PERIOD				$	36,807						$	32,791					$	36,807					$	32,791

*As a result of purchase accounting rules, the operating results of the pre-merged PhotoMedex for nine- months ended September 30, 2011 are not included in the above condensed statements of cash flows for the period ended September 30, 2011.

« First ‹ Previous 1 2 3 4 5 6 7 Next › Last »